Private pension levy may be kept

A levy on private pensions which costs savers an average of €2,500 a year may be retained in next week’s budget, despite previous commitments to abolish it.

Finance Minister Michael Noonan is keeping his options open in relation to the tax, which will be part of the budget options being considered.

But Fianna Fáil is warning that the levy must not be used to fund reductions to income taxes which have been promised over the next three years.